Affirmative Action Group (AAG) is seeking the reversal of the agreed take-over of Barclays Bank Zimbabwe by First Merchant Bank (FMB) of Malawi, citing irregularities in the implementation of the Indigenisation and Economic Empowerment Act.

Barclays Bank Zimbabwe has been on the market for a long time after the majority shareholder, Barclays Bank Plc announced its intention to dispose 68 percent of its stake in the local entity and the subsequent takeover by FMB of Malawi for US$60 million.

Local business people have also raised concern over the transaction, considering the history of directors who have been accused of poor corporate governance in the financial services sector in other countries.

Briefing journalists in Harare today, AAG President, Mr Chamu Chiwanza said the transaction must be reversed as a number of local businesses have expressed their capabilities in taking over the financial institution.

Mr Chiwanza also noted that his organisation is not against foreign direct investment but the implementation of the Indigenisation and Economic Empowerment Act which continues to be changed to suit individual cases.

Under the agreed terms of transaction, FMB will hold 43 percent stake, workers 15 percent, while the rest of the shares will be traded on the Zimbabwe Stock Exchange (ZSE).

The transaction is currently waiting for approval from the Reserve Bank of Zimbabwe (RBZ) to complete the process.